Undoubtedly, NEO is China’s flagship project and is an important project. Despite that big tag, NEO is on a slide and so far, sellers are aiming for $25 if not for $12 assuming prices break from this horizontal consolidation. At the moment, NEO is down four percent in the last day and it is likely to lose more as traders move within a bear break out pattern.

From the News

It’s exciting time for cryptocurrency and smart contract platforms including NEO. As we know, NEO and Tron are some of the high level DLT projects from China that promises a lot. Both are run on their own mainnet but there are some as Ontology that appreciate the initial support of their former blockchain, in this case, NEO. Everyone does agree that competition is healthy but Tron mainnet launch was characterized by taunts and outright misinformation despite the fact that it did grow out as an ERC-20 token.

This sort of cooperation is of course wonderful for blockchain as a whole and lest we forget Ontology did donate 100 million ONT tokens to the NEO council. In a statement, this unlocked 100 million tokens representing 10 percent of the total ONT supply is to “enhance cooperation” and recognize NEO’s “significant support to Ontology in its initial phase”. Gan xie, it is!

Daily Chart

Here is the thing: Conservatives can avoid taking trades until we see sellers testing $25 or break above $40. On the other side though, risk-off traders can begin initiating shorts at current spot rates with stops at July 10 highs at $35. The reason behind this decision is clear.

NEO is trading with a bear break out pattern. At the moment, the retest phase is over after failure of buyers to push above above $40. So, cognizant of the pattern we are in, this is the trend resumption phase and it is likely that bears might break below $25 and drive prices towards our ultimate targets of $12.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.